Debbie Espinoza GRI, Broker, ABR ePro, SFR, CNE

The Cost of Financing the American Dream of Home Buying May Just go up AGAIN! National Association of Realtors just sent out a notice that the congress is thinking of making all the new homeowners pay for the extension of the payroll tax break. They are proposing that all federally backed loans; FHA, Fannie Mae and Freddie Mac loans come with even more fees to cover their ineptness of being able to cut out totally useless spending that they can't seem to stop.

Once again the middle class that are trying to get ahead and have the American Dream are going to be forced to pay for a government that can't do their job and balance the budget by STOPPING the crazy spending! This 'guise' of saying they are for helping the middle class is once again proven to be bunk!

Write or call your representatives and tell them that ENOUGH IS ENOUGH! - if they keep KILLING the housing market with their dumb ideas we will never get out of this mess! And THAT is my opinion

After getting several calls lately from prospective buyers asking me to rush out and show them a house “today”, and some even telling me they have an agent thank you, but just want to “save some time”, I realized that a large number of home buyers do not realize just exactly how a buyer agent works.

First thing to know is that a real estate agent is the only profession that I can think of where we do the work before getting paid and sometimes NEVER get paid. A home seller picks an agent, signs a listing contract and puts the agent to work. The agent spends money on advertising, open houses, agent caravans, flyers, signs, lockboxes, web sites, and more, counting on the fact that the home will sell in the next 60-90 days and they will receive their compensation for all the time and work they have put into marketing the home to sell. For this reason the agent needs to have a reasonable, cooperative seller; meaning that the seller will allow a sign and lockbox, the seller will follow the stager’s instructions to ready the home for sale, they will keep the home in ‘show ready condition’ for showings at short notice, they will vacate the house for showing, preferably that they will get a home inspection BEFORE listing so they can take care of the issues that the buyer will find eventually when they have their own inspection, and MOST IMPORTANTLY, that they will price their home correctly from the get-go.

Out of the compensation that a home seller compensates their listing agent with, comes a portion that will go to a buyer’s agent that brings in a buyer that buys the home; (note that I said ‘buys’ the home and not ‘shows’ the home. Ergo no agent gets paid to show a home) Now out of that also goes payment to the agent’s brokerage, advertising budget etc. etc, but that’s another story.

When the listing brokerage puts the home on the multiple listing service they offer a part of their compensation to the buyer’s broker to bring a ready, willing and able buyer that purchases the property.

Many buyer agents are fine with accepting whatever the seller’s brokerage is offering to pay them when their buyer purchases the home. Many buyer agents will also go to “For Sale by Owners” and ask them for compensation to bring a buyer willing to purchase their home, and the sellers are usually more than willing to.

Buyer agents do not get paid to look up listings, nor do they get paid to drive buyers around and show homes or open up their own listing so prospects can ‘check it out’. We get paid when our committed, qualified, buyer BUYS A HOME, and not before. We are willing to take time away from our families, gas up and wash our cars, and cull through pages and pages of listings, and show a buyer client homes, IF and only IF, the buyer is ready, willing and able to buy WITH US. Let me define:

READY: You want (need) to buy in the next 0-3 months. Your lease is coming up, you are tired of renting or living with friends or family members, you are moving in from out of the area. You are not “looking to see what’s out there and if something is a KILLER deal then you might buy it”. You have your financial house in order and have a loan approval or;

WILLING: are willing to meet with our preferred loan officer to see what you can qualify for. You are willing to get your financial paperwork together so the loan officer can approve you, you are willing to take a few minutes on the phone or at their office to meet and discuss what you are looking for in payments etc. so that the loan officer can get the best program for you and assist you with credit clean up if needed. (Over 50% of credit reports have errors on them and the sooner you find out the sooner they can be corrected and you are on your way to getting the best rate and term on a loan) You are willing to commit to us as your buyer representative.

ABLE: You have a job, steady income. You have been paying your bills on time and you’re not in the middle of a short sale, foreclosure, loan modification or bankruptcy. A bank account with some savings in it would be nice, but there are programs that allow for 100% gift money if you have someone willing to give you a cash contribution to help you qualify.

Buyers on a longer time line or ones that are not in a hurry but waiting for that perfect home we do have a program for as well. We set up your search for you so you are sent listings daily that meet your criteria, but we call you maybe every two weeks to a month and not daily like our “right now’ buyers. You tell us when you see ‘the’ home or when you are ready to go on our fast track VIP buyer program. We know that not everyone is ready to go and that’s why we have different buyer programs.

Once you take these steps and we know you are serious about buying a home – We go to WORK!

We scour the listings daily, if you are not in the area and the market is hot for good homes like it is now- We will go preview the homes, take photos and video and upload for you to take a look. Yes, we have buyers that purchase homes that they have not seen in person. We check expired listings, for sale by owners, call on properties that have been in escrow for a while to see if maybe it’s a ‘shaky buyer’ and maybe we can come in on back up if something happens. We work around your schedule to show you properties and get all the information about them so you can make an informed decision when making an offer. We negotiate the offer, schedule and attend all the inspections, negotiate repairs and other issues, read and decipher title reports, disclosures and escrow instructions. We are the liaison between you and the listing agent, escrow, title, inspection, home owner association, lender, appraiser- we hold it all together. Follow up, communication, follow up, we make sure each party is keeping the timeline so you have a smooth closing. We tell you when it’s time to call your insurance company to get a homeowner’s insurance quote, we call and schedule all your necessary inspections, home, septic, well, pool, roof and we attend them, we get you the information for changing over your utilities, trash, cable, we order your home warranty, we coordinate your loan signing with the lender, escrow and the notary, we do a final walk-thru of the home with you before closing and finally we get to hand you the keys to your new home on the day it records into your name. (Our favorite part!)

But, we are different from most other buyer agents in that our relationship is just beginning. We stop by in the first month to visit you in your new home to see how things are going. WE have lists of service providers that we can recommend for you when you need work done on your home or a good area service provider. We call regularly just to say ‘hi” and see if you need anything, we pop-by with small gifts throughout the year just to say ‘we’re thinking of you’ and we have annual get togethers for our clients just to say “Thank you” for your business and for your referrals.

Let me let you in on a little secret about real estate law that almost every buyer agent violates. California law requires that before a real estate agent begins any real estate activity with a buyer or seller that they give a disclosure called Agency Disclosure (AD) and have the person sign that they received the disclosure and that it was explained to them. What this agency disclosure does is explain what an ‘agent’ is and the three types of agency that can be found; Seller Agent, Buyer Agent, and Dual Agent (where the brokerage represents BOTH buyer and seller). This means that technically BEFORE an agent shows you a property they should be presenting you with an agency disclosure and explaining how agency works. They should also follow that up with a Buyer Representation Agreement which confirms a commitment between the agent and the buyer to work together exclusively to find the buyer a home.

Let me tell you what can happen when there are no “Buyer Agency Agreements” signed. Let’s say you have a family member or good friend that you plan to have write your Purchase offer because you know them and maybe they are giving you a deal by sharing some of their compensation with you; or maybe you have one of these part-time agents that just ‘don’t have the time to show you homes when you want to see them, or they are on vacation and have not arranged for anyone to cover for them, so they tell you to go find something and then they will write the offer. So you call the listing agent for the home and say that you want to look at the home. I will say that 98% of the agents are so desperate for business that they won’t ask you many questions, including the all-important question “Are you working with an agent?”, and they will run out to show you the home in the ‘hopes’ that you buy it. You may even say to yourself; “If they ask if I’m working with an agent I will just say ‘no’” because you think it doesn’t matter. This is why it matters. The listing agent or one of their buyer agents drives out to show you the house, they answer your questions and leave thinking you’ll call or they’ll follow up and see if you want to make an offer. You LOVE the house and you call your friend, aunt, cousin or part-time agent to write the offer for you. The listing agent receives the offer and says “wait a minute, I showed these people the house and they told me they had no agent”. The listing agent’s broker then calls your agent’s broker because “HOUSTON WE HAVE A PROBLEM”- the listing agent has procuring cause and they are the ones entitled to the commission on the sale of the home with you as the buyer because THEY SHOWED YOU THE HOME and not your agent. So now you get to decide- do you really want the home? Because now either your agent is now the listing agent or your buyer agent friend is now working for FREE and not splitting anything with you.

So the moral of this story: When you are ready to buy a home or thinking that you may be ready to start the process to buy a home. Find a good REALTOR and make a commitment to let them work for you and be willing to let them educate you on the reality of TODAY’s market. Now is NOT the time to listen to your friends, co-workers or media ‘experts’ on home buying. A good buyer agent will know what’s happening with home prices, what the list to sale prices are, what kind of seller concessions make sense in this market, what kind of lender you need to work with- Not your ‘average’ REALTOR that is doing 2-3 deals a year, but one that is putting in 2-3 offers a week for buyers, one that has good relationships with listing agents, escrows, inspectors, one that knows how to put an offer together that has a chance of getting accepted..- THIS is the agent you want working for you. This is Stage Presence Homes. Call us today to get started on your purchase of a San Diego home… and remember it doesn’t cost you anything, but your commitment- and we guarantee your satisfaction in writing.

Prepping Your Home for Resale? Get Ready to Take the Stage

It may seem counterintuitive to put decorator touches on a home you've decided to sell, but "staging" your home-fixing it up and decorating it so it will appeal to the broadest range of potential buyers-pays real dividends. According to the Concord, California-based International Association of Home Staging Professionals (IAHSP), even in the 2007 market slowdown the average professionally staged home sold within 32 days, compared to 160 days for comparable non-staged homes. In fact, 93 percent sold within one month. And the best part? On average, they sold for an increase of 3 to 10 percent.

Hiring a professional stager can cost from a few hundred to thousands of dollars depending on the amount of work in question, but will save you a lot of legwork and elbow grease. I am a member of the International Association of Home Staging Professionals and a Real Estate Professional. Stage Presence Homes is a full service Agency doing all we can for our clients.

Here on some tips on things you can even do yourself:

INDOORS


Staging allows potential buyers to visualize their lifestyle within your home. Your goal is to showcase your home at its cleanest, roomiest and brightest-while avoiding adding too much of your own personality. Here are some proven winners:
• Paint


Freshen walls by painting them in a neutral hue.
• Upgrade lighting


Replace out-of-date fixtures and use 100-watt bulbs to brighten the home for showings.
• Renovate the kitchen and/or baths


Replace stained countertops, old faucets, unfashionable lighting and damaged floors with neutral choices. Cabinetry in an outdated finish can be inexpensively re-faced. In the kitchen, even entry-level stainless-steel appliances will give your kitchen a high-end look.
• Cut clutter


Don't overstuff your rooms. Pack away your knickknacks and limit furniture to the basics, storing side tables, loveseats, small bookcases and oversized toys out of sight.
• Upgrade flooring


Use a steam cleaner on carpets, or, if you have hardwood underneath, consider ripping broadloom out altogether. Refinish hardwood if needed, as it's a strong selling point.

OUTDOORS


Knowing that many potential buyers do "drive-bys" before committing to an open house or showing, exterior staging should maximize your home's curb appeal and make visitors want to come inside.

• Repaint


If your porch, front door or siding needs painting, take care of it ASAP.
• Re-roof


While it can be a big-ticket item, if you're due for re-roofing, it's better for you to have it done now than expect potential buyers to take on the hassle-many will simply pass on your house instead.
• Cut clutter


Get rid of any outdoor knickknacks like leftover holiday decorations, novelty yard ornaments or signs. The only outdoor accessory your front yard needs is tidy landscaping and landscape lighting.
• Clean the driveway and sidewalk


Use a pressure washer to clean your sidewalk and driveway.
• Freshen the porch


Replace an out-of-date mailbox, street number and porch light. Flank the front steps or front door with a pair of large urns with seasonal plants, for a pretty look.


For more information on getting your home ready to sell visit my website at StagePresenceHomes.com or contact me at DebSDRealEstatePro@gmail.com

For Sellers who want to get a good offer quickly on their home there are 5 things that will stand out to buyers that you will want to address BEFORE you list your home:

1. Garage door- Unfortunately builders have not figured out that this isn't the most attractive part of a home and they continue to put the garage in the center stage spot of a home. For this reason the garage door can make or break your curb appeal. If its an old wood one, or a twisted smashed in metal one, replace it. If it's just dirty then you may want to replace the top panel with the window panels and put a coat of paint on it. There are some new "faux' painters out there that can make your garage door look amazing for a few hundred bucks. Also clean the grease stains of the driveway and if there is severe cracking you may want to resurface or replace the driveway as well.
2. Windows- Most buyers want a well insulated home and this includes new vinyl windows. For less than $300 each you can put retrofit vinyl windows in, they also look much better from the exterior than the old aluminum frame windows.
3. Flooring- Carpets should be clean and stretched properly, without any lumping. Tiles and grout can be professionally cleaned by your local carpet guy with a special machine that makes the floor look brand new. After it's cleaned put a coat of sealer on to keep the grout in top condition. Buyers DO NOT want a flooring allowance, and your idea of an allowance won't be theirs. Put the new carpet in before you list your home. It will also be a benefit to replace baseboards with a new, wider style. The little details can make a difference.
4. Exterior paint- The exterior of your home should be clean and fresh. If painting or a new stucco 'fog coat' isn't affordable then get a good power wash and at least freshen up the trim with a fresh coat of paint. A new coat of paint on your front door along with new door handles and locks and porch light shows as a welcome site when prospective buyers walk up.
5. Bathrooms and kitchen- These are very important rooms to buyers. If you can't afford a full rehab to bring them up to date then give them a good, professional cleaning and replace fixtures. You may also want to replace lighting if your bathrooms have the 'hollywood' style strip of round ball lights above or around your mirrors or if your fixtures are the old gold brassy look.

If you are looking to list your San Diego home, call Deb at Stage Presence Homes to come out and give you some ideas on how to make your house stand out and sell quickly for the highest price. You only get one chance to make a first impression! Stage Presence Homes Real Estate

Pre-foreclosure Period

Court foreclosures only occur if a lender desires a deficiency judgment. This process gives a borrower up to one year to redeem the property after the foreclosure sale.

In almost all cases, foreclosures are handled out of court. The process begins when a lender file a notice of default with the county recorder identifying the default amount and the date the borrower must pay off the default. The notice is mailed to the borrower and other affected parties.

Up to five business days before the trustee sale, the borrower may pay off the default plus any applicable costs of foreclosure and stop the foreclosure process. Three months after the notice of default is filed, the lender can schedule a trustee's sale of the property.

Notice Of Sale/Auction

At least 20 days before the trustee's sale, the notice of sale must be posted on the property and in one local public location. The notice is also published once a week for three weeks in a local newspaper, starting at least 20 days before the sale date. The notice is mailed to the borrower at least 20 days before the sale and to anyone who requests the notice. The notice must contain the date, time, and location of the sale, the property address, and the trustee's contact information. In addition, the notice of sale must be recorded with the county recorder at least 14 days before the sale.

The trustee's sale is a public auction and the property is sold to the winning bidder. The trustee may require bidders to pay the full bid amount in cash or cashier's check. Anyone may bid at the sale, including the lender and any junior lien holders. A trustee's sale may be postponed by announcement at the sale. If a sale is postponed more than three times, a new notice of sale must be issued.

After the sale is complete, the trustee transfers ownership to the winning bidder. The borrower does not have the right to redeem the property after the sale.

Contact me at Stage Presence Homes for a list of homes in forclosure in your area.

Click here to see statistics on California forclosures.